RC:
Surprisingly, VW has a pretty bad reputation in the US and other parts of the world. In Germany, the brand VW actually has a pretty good reputation, next to Audi and BMW, maybe at a slightly lower level.
Also don't forget that VW owns Audi, Lamborghini, Bugatti, Bentley and of course Porsche. They also own Seat, Skoda and the well known truck manufacturer Scania.
I know about VW's popularity inside Germany, it's their national brand and quite possibly due to VW's working class root. It's pretty much Porsche->MB->BMW->Audi->VW.
With all the prestige brands within the VW group, it's beyond comprehension why VW would crowd the upper market range with the VW brand instead of allowing the other brands within the group to work it out. VW the brand has always been the value brand, it's how it got started and found success, and how the world viewed the brand image. Piech's logic is just madness, or maybe just his ego.
In my college days, Civics, Toyota Corollas, various GM compact cars are the norm for new cars for those who can afford, VW is also on the radar but it's a little step up, GTI is like the ultimate car for us poor college students. Even a second hand Golf is viewed as better than a brand new Civic. VW brand image is beyond comparison in the econo cars. But beyond that market, VW the brand just does not have enough to compete against the Acuras and Lexus, not to mention the even higher class Audi, BMW and Mercs.
